Recently we had an ARPOLA PLUS+ member call us with a fairly common issue—her new tenant needed to back out of the lease within hours of signing it!
This ARPOLA member had scheduled a move-in date, collected the security deposit, the first month’s rent and handed over the keys. She planned on doing a walk thru of the property on move in day and thought she had successfully rented the property.
BUT! Less than four hours later, the tenant called her back and needed to terminate her lease. Turns out, the new resident’s potential employer was unable to hire her and the resident could no longer afford to rent the property.
But there are a few learning lessons and best practices here we could all stand to review. Let’s explore the ARPOLA member could have done to prevent this from happening or have a better idea of who she was renting to.
How to end a lease part one
- Get employment verification information—if the ARPOLA member had required her tenant to provide employment information and requested a current pay stub to validate income she might have learned of the hiring failure earlier. Download ARPOLA’s employment verification form.
- Ask for past landlord references—the best reference you’ll ever get about a tenant is from a previous landlord. Ask your applicant to provide contact information from previous landlords. Be sure to go at least two landlords back. Download ARPOLA’s landlord reference form.
- Run a comprehensive tenant screening—maybe this potential tenant has had similar issues with employment in the past? Perhaps scattered employment led to evictions or judgments. Take the time and $28 to run the Investigative Screening provided with your ARPOLA membership. It could end up saving you time and money in the long run.
Check our two part series on mutually ending a lease this week!